Japan announced this week that it will begin the biggest-ever release of oil from its national reserves, a move driven by fears that the US-Israel conflict with Iran could severely restrict the flow of crude oil through the Strait of Hormuz. Prime Minister Sanae Takaichi said roughly 80 million barrels — equivalent to 45 days of domestic demand — would be released to Japanese refiners beginning Thursday. The announcement confirmed what many energy analysts had anticipated: that Japan would need to act boldly to protect its supply chain.
Japan’s almost total dependence on Middle Eastern oil has long been considered a strategic vulnerability. With over 90% of its crude imports sourced from the region, disruptions along the Hormuz corridor translate almost immediately into domestic supply concerns. The current conflict has already affected tanker traffic, raising fears that if the situation worsens, Japan could face genuine fuel shortages.
Adding to the urgency, the government last week approved a parallel release from private-sector reserves worth 15 days of supply. The new state release adds significantly to this, bringing the overall national response to one of the largest coordinated reserve deployments in Japanese history. As of late last year, Japan held total reserves of approximately 470 million barrels — enough to cover over 250 days of consumption.
The economic impact of the crisis has already been felt at petrol stations, where prices rose to a record ¥190.8 per litre before the government introduced subsidies to cap costs at around ¥170. These subsidies will be adjusted weekly based on prevailing oil prices. Officials are determined to prevent the international energy shock from becoming a domestic cost-of-living crisis.
Internationally, Japan’s posture has been defined by diplomatic engagement rather than military action. Prime Minister Takaichi held firm against Donald Trump’s call for Japan to send naval forces to the Strait of Hormuz, citing the country’s constitution. She has pledged instead to pursue all available diplomatic channels to help stabilize the region and protect the international shipping lanes so vital to Japan’s economy.